16% increase in pensioners seeking jobs

Retirees return to work as UK prices climb at fastest rate since March

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The rising cost of living has led to a 16% increase in UK pensioners searching for jobs over the past year, according to research by Almond Financial. The trend highlights the financial challenges faced by retirees, with significant regional variations in job-seeking activity.

Oxford recorded the highest surge in pensioners looking for work, with a staggering 900% increase since last year. The city’s high living expenses – £893.90 per month for a single person excluding rent or mortgage – may be a key factor. 

Plymouth had the second highest rise with a 500% increase, while Swindon, Eastbourne and West Bromwich complete the top five with increases of 300%, 275%, and 150%, respectively.

Further north, Warrington saw the seventh highest rise in pensioners seeking jobs, with a 133% increase over the year.

At the other end of the scale, Milton Keynes actually saw a 38% decline in pensioners seeking jobs.

Rising cost of living putting more pressure on pensioners

The figures come after research from Standard Life revealed earlier this year that 14% of retirees aged 55+ have returned to work, with a third of them citing increased living costs as the reason. A quarter (24%) found their pension was not sufficient to live off.

It was also announced on 18 December that the UK inflation rate has increased for the second consecutive month, with prices climbing at their quickest rate since March. The inflation figure, which measures annual price growth, rose to 2.6%. It puts further pressure on those with smaller fixed incomes such as pensioners.

Alternatives to post-retirement work

While taking on a job can provide additional income, returning to work after retirement can be stressful – and for those with health problems the option may simply not be viable. However, there are other ways to boost retirement finances that may reduce the need for employment:

Check eligibility for benefits. Pensioners could maximise their income by claiming benefits like Attendance Allowance or Pension Credit. For example, Pension Credit recipients could receive up to £218.15 per week – and if you qualify for Pension Credit, you’ll get a further £300 from the Winter Fuel Payment. Check what benefits you could be missing out on at Entitledto.co.uk so you can start applying.

Track down lost pensions and savings. Using tools like the government’s Pension Tracing Service can help retirees locate forgotten pension pots or savings, which might provide additional financial support.

Invest surplus income. Retirees with available funds may consider savings or investments such as an ISA, potentially growing their money over time.

Ask family for help. If your financial situation is causing you sleepless nights and you have relatives who could help then don’t be embarrassed to reach out to them. They may be able to lend you the money you need to prevent you having to return to work.

Equity release. This allows homeowners aged 55 or over to unlock money tied up in their property, providing tax-free cash to spend in almost any way they wish, including topping up day-to-day finances. As a plan can impact how much you leave as inheritance, and reduce your eligibility for some means-tested benefits, seeking specialist equity release advice before making a decision is essential.

Downsizing. Selling a larger home to move into a smaller, more affordable property, or one in a less expensive area, can free up capital. It may also reduce ongoing maintenance and utility costs. 

Sources

16% increase in UK pensioners searching for jobs over the past year: 16% rise in UK pensioners seeking jobs as living costs soar. IFA Magazine. Accessed 19 December 2024.

14% of retirees aged 55+ have returned to work: 14% of retirees have returned to work, with the majority stating financial circumstances forced them to unretire. Standard Life. Accessed 19 December 2024.

Prices climbing at their quickest rate since March: UK inflation – will prices keep rising? BBC.co.uk. Accessed 19 December 2024.

About Clare Yates. With over a decade’s experience writing about later life financial planning, Clare offers a wealth of knowledge about equity release, pension annuities, wills, LPAs and more. When she isn’t writing, Clare likes to spend her time baking and going on walks with her husband, two children and their rescue dog. Follow Clare on LinkedIn